The German Federal Government has decided not to intervene in the ongoing dispute between the Italian rail company Italo and Deutsche Bahn. According to a spokesperson for the Ministry of Transport, it is neither “provided for nor permitted” under European law for the state to instruct a network infrastructure operator in Germany.
The infrastructure manager of the national rail network is InfraGo, which is 100 percent owned by Deutsche Bahn and, consequently, the state. InfraGo has rejected Italo’s demands for a fixed commitment to operate on specific routes.
The Italian company reportedly seeks to secure multi-billion Euro contracts for high-speed trains, but only if it receives long-term guarantees for the right to use specific railway lines. Under these terms, market entry would be virtually impossible. InfraGo instead stated that “neither EU law nor the Railway Regulatory Act provides a basis for structurally favoring new market participants”.
The decision regarding the dispute is now expected to be made by the Federal Network Agency. Despite its previous public advocacy for increased rail competition, the Federal Ministry of Transport is explicitly choosing not to intervene in this procedure.
The spokesperson mentioned the upcoming revision of EU railway law, scheduled for 2031. This change is set to replace the current route allocation guideline and fundamentally unify cross-border rail traffic across the European Union.
